One trader apparently thinks that there's no going back for
restaurant operator Brinker International.
optionMONSTER's Heat Seeker monitoring system detected the sale of
about 3,000 January 35 puts for $1.50 and $1.55. Volume was more
than 100 times the previous open interest at the strike, indicating
that new positions were initiated.
generates income in return for a pledge to buy shares in the event
of a future pullback. Investors use the strategy when they like a
stock but don't want to shell out cash getting long immediately. It
also programs a
at lower prices. (See our
section for more on why selling puts often makes more sense than
In the case of yesterday's trade, that entry level would be
$35--slightly below a long-term peak from early 2007. EAT ripped
through it in March, which could be leading some chart watchers to
believe that it will provide support going forward.
EAT fell 1.28 percent to $38.66 yesterday. The company, which owns
Chili's Bar & Grill and Maggiano's Little Italy, will issue its
next earnings report on Aug. 2.
Total option volume was 12 times greater than average in the
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